Binding Promises and Cooperation Among Strangers
10 Pages Posted: 23 Dec 2014
Date Written: November 27, 2012
In an experiment, a group of strangers was randomly divided in pairs to play a prisoners’ dilemma; this process was indefinitely repeated. Cooperation did not increase when subjects could send public messages amounting to binding promises of future play.
Keywords: coordination, cheap-talk, deception, repeated game, social norms
JEL Classification: C90, C70, D80
Suggested Citation: Suggested Citation